Preview

Derivative

Powerful Essays
Open Document
Open Document
1907 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Derivative
CONTENT
I. Introduction
1. The concept of derivatives market
2. The situation of the stock market and forex market in Vietnam
II. Influences of derivatives market as well as on Securities Market Forex market at Vietnam
1. Stock Market
a. Growth stock market
b. Debt leverage
2. Forex market
a. Increase the value of domestic currency
b. Exchange rate fluctuations
III. Conclusion.

I. Introduction
1. Derivative Market
The derivatives market is the financial market for derivatives, financial instruments like futures contracts or options, which are derived from other forms of assets. The market can be divided into two, that for exchange-traded derivatives and that for over-the-counter derivatives. The legal nature of these products is very different as well as the way they are traded, though many market participants are active in both.
2. The situation of the stock market and forex market in Vietnam

The money market in the first 9 months of 2013 have continued to improve positive liquidity of the banking system is strengthened and is abundant in comparison to the previous period due to increased deposit rate is always achieved high growth than the growth rate of the system thong12 credit , interest rates on inter-bank market , so despite some point surge but has generally maintained a stable interest rate is always low ( 3-4 % ) in the majority of the time the first 9 months of the year ; lending rate on deposit facility is granted on the market as well as raising the rate from the secondary market on the total assets of the organization decreasing credit shows positive signal when the level of risk in most of the activities of credit institutions and the entire system has been dramatically reduced ; On foreign exchange markets , exchange rates from year to now quite stable and only a few small fluctuations seasonal and temporary psychological . According to the Financial Supervisory Commission national, foreign exchange

You May Also Find These Documents Helpful

  • Powerful Essays

    Fins1612 Notes

    • 17846 Words
    • 72 Pages

    Page 3: Introduction to the Financial System Page 7: Commercial Banks Page 12: The Share Market and the Corporation Page 15: Corporations Issuing Equity into the Share Market Page 19: Investors in the Share Market Page 24: Short-term Debt Page 28: Medium- to Long-term Debt Page 32: Interest Rate Determination and Forecasting Page 37: The Foreign Exchange Market Page 40: Factors that Influence the Exchange Rate Page 42: Futures Contracts and Forward Rate Agreements Page 47: Options…

    • 17846 Words
    • 72 Pages
    Powerful Essays
  • Powerful Essays

    The initial purpose of derivative contracts was to allow traders to hedge risk which they faced in the cash market. Two of the most popular derivative instruments are financial futures and options. Financial futures commit the parties to buy or sell underlying assets at set prices on an agreed future date. The benefit of financial futures in its most basic form can be exemplified by a poultry farmer who is worried about the risk of price fluctuations in eggs for instance. He knows in 8 months he will sell a certain quantity of eggs. He can hedge against this risk by selling (going short) an eight month “future” in eggs. The “future” will consist of a standard amount of chicken to be exchanged in eight…

    • 2782 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    Marketing In Canada

    • 482 Words
    • 2 Pages

    Financial markets consist of markets for money, bonds, equities, derivatives, and foreign exchange. It is the channel through which savings become investments, and through which money and financial claims are transferred and settled.…

    • 482 Words
    • 2 Pages
    Powerful Essays
  • Good Essays

    This essay will explain and illustrates the key mechanism behind the money multiplier and explore how monetary authorities can influence its size and affect the money supply in the economy. Firstly, an introduction on money measure will be presented. Secondly, the mechanism behind money multiplier will be presented by using equations to explain the cyclical changes in the multiple factor. Thirdly, the examination of the money multiplier in the current economic climate will be put forward. Fourthly, an explanation on the open market operation, discount window and the reserve ratio will be presented to convey the influence in the size of money supply. Finally, this essay will conclude with an overview of the essay.…

    • 645 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Nowadays more than one billion population in all use US dollar and Euro which was born in January 1st, 1999 and officially circulated in January 1st, 2002 and 1.5 billion population use Chinese Renminbi in the world. That is to say, there are almost three billion people that are a half of the whole population of the world using US dollar, Euro and Chinese Renminbi. World economy has experienced a process of American subprime mortgage crisis, American financial crisis, global financial crisis and global substantial economy crisis in just a few years. US dollar got a heavy toll because of the global financial tsunami caused by the bankrupt of Lehman Brothers in September 15th, 2008. Federal Reserve Board (FRB) had responded that they injected liquidity to the financial system to increase the confidence to the market. At present the financial tsunami starts to influence the second largest money, Euro and the result of Euro still cannot be predicted. After more than thirty years’ reform and opening, the GDP of China has increased by the fastest speed in the world. Whether Chinese Renminbi can be influenced by the global financial tsunami is concerned. This essay will first compare the reactions taken by the monetary authorities in US dollar, Euro and Chinese Renminbi systems to response the global financial crisis. Then it will analyze the role of central bank and the use of monetary policy and fiscal policy in managing a single currency and discuss the actions taken to support the banking system and manage sovereign debt problems. Finally, it will refer to the conditions required for successful operation of a single currency covering many states.…

    • 3639 Words
    • 15 Pages
    Best Essays
  • Good Essays

    Assignment

    • 1118 Words
    • 5 Pages

    Four major central banks, Britain’s and Japan’s already have the interest rate at near zero and the European Central Bank (ECB)’s interest rate is going to stuck near zero. During that time, the balance sheets of all four institutions have expended as they increasing the volume and range of assets and loans.…

    • 1118 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Differentiation summary

    • 312 Words
    • 2 Pages

    If the initial condition(s) is not given, and different values are given to the arbitrary…

    • 312 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Stock Market

    • 373 Words
    • 2 Pages

    The size of the world stock market was estimated at about $36.6 trillion at the beginning of October 2008.[1] The total world derivatives market has been estimated at about $791 trillion face or nominal value,[2] 11 times the size of the entire world economy.[3] The value of the derivatives market, because it is stated in terms of notional values, cannot be directly compared to a stock or a fixed income security, which traditionally refers to an actual value. Moreover, the vast majority of derivatives 'cancel' each other out (i.e., a derivative 'bet' on an event occurring is offset by a comparable derivative 'bet' on the event not occurring). Many such relatively illiquid securities are valued as marked to model, rather than an actual market price.…

    • 373 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Derivatives Ch. 3

    • 1097 Words
    • 5 Pages

    Buyer’s Perspective Short in Underlying Price to Increase Buy Insurance Sell Insurance Long Call (Cap) Producer’s Perspective Long in Underlying Price to Decrease Long Put (floor)…

    • 1097 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Differentiation

    • 336 Words
    • 2 Pages

    Professional Learning Communities are collaborative teams whose teachers work interdependently to achieve common goals linked to the purpose of learning. The steps that I would you use to implement, manage, and support the development of a professional learning community at my school is to first determine and define the objective or goal. Next, with the team of teachers, identify learning targets for the students and establish standards based formative assessments. Then, the assessment results would be analyzed because it would give feedback about any successes or failures. It would also notify the team if any interventions are needed to be implemented. Finally, I would provide time for collaborative meetings so that everyone feels heard and supported.…

    • 336 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Derivatives Paper

    • 2029 Words
    • 9 Pages

    In history, derivatives have evolved into what they are today. Previously, farmers primarily utilized derivatives because they saw great risk in farming certain crops especially crops that were hard to harvest in certain areas (Chance 7). Some say though that derivatives can be traced all the way back to biblical times but it is more feasible to look at the history in the past couple of centuries (“A Brief History of Derivatives” 6). In 1570, the Royal Exchange opened in London for forward contracting and in 1690, options began trading on securities in London. It was not until 1790 though that options began trading on securities in the United States (“A Brief History of Derivatives” 6). Today, numerous companies utilize many different kinds of derivatives on several financial markets.…

    • 2029 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    Derivative Problem

    • 437 Words
    • 2 Pages

    A Honda Civic travels in a straight line along a road. It’s distance x from a stop sign is given as a function of time t by the equation, where and. Calculate the velocity of the car for each of the time given: (a) t = 2.00s; (b) t = 4.00s; (c) What will be the time when the acceleration is equal to zero?…

    • 437 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    8. How effective would be the following factors to improve Currency derivative market of India? (Rate 1 for least effective, 5 for highly effective) • • • Improving investors knowledge Opportunity to trade in non-US currency futures…

    • 364 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The Methods of Credit Control

    • 4945 Words
    • 142 Pages

    The quantitative methods of credit control are the general and traditional methods. They aim at the regulation of the quantity of credit and not its application in various uses. They are expected to control and adjust the total quantity of deposits created by the com­mercial banks. They relate to the volume in general. These methods are indirect in nature. The objectives of quantitative methods of credit control are as follows: (i) Controlling the volume of credit in the economy. (ii) Maintaining equilibrium between saving and investment in the economy. (iii) Maintaining the stability in exchange rates. (iv) Correcting disequilibrium in the balance of payments of the country. (v) Removing shortage of money in the money market. The important methods under this category are, 1. Bank Rate Policy It is also known as discount rate policy. Bank rate is the rate at which the Central Bank is prepared to rediscount the approved bills or to lend on eligible paper. This weapon can be used independently or along with other weapon. By changing this rate the Central Bank control the volume of credit. The bank rate is raised in times of inflation and is lowered in times of deflation. A rise in the bank rate is usually preceded by the following events: (i) Over supply of money and rising price level. (ii) Great demand for money caused by active…

    • 4945 Words
    • 142 Pages
    Good Essays
  • Good Essays

    foregin trading system

    • 761 Words
    • 4 Pages

    The online Foreign Currency Trading system enables you can have 24 hour updates of your investment in currency from the convenience of your own home.The Foreign Currency trading system involves no exchange fees, commissions and payments of that sort. The margin and leverage trading allows you to increase your earnings by up to 100times more than regular currency trading. This means larger profits and can benefit someinvestors. Currency Converter gives you accurate and instant foreign currency conversions. Theoptions are varied for minimum currency trading investments. There is also mini account wherewith a very small initial investment in a leveraged foreign currency, you can reach a high rewardthrough minimal risk.…

    • 761 Words
    • 4 Pages
    Good Essays